Firmness continued on the bourses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 197.73 points or 0.7% at 28,319.62. The market breadth indicating the overall health of the market was positive. Chinese stocks tumbled, with a wide sell-off sweeping across the financial sector as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business.
India's Prime Minister Narendra Modi on Friday, 16 January 2015, called for making India a $20 trillion economy from a $2 trillion economy today. Speaking at an event, Modi also said that the government is committed to achieving the 4.1% fiscal deficit target announced in the Union Budget 2014-15.
Finance Minister Arun Jaitley reportedly said today, 19 January 2015, that the government will increase spending on infrastructure.
Telecom stocks were in demand. SpiceJet extended Friday's spurt on change of management. Metal shares were mixed.
Earlier, the Sensex hit 6-week high and the 50-unit CNX Nifty hit its highest level in more than six weeks as these two key benchmark indices extended initial gains in mid-morning trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1099.93 crore during the previous trading session on Friday, 16 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds.
Brent crude futures edged lower in volatile trade.
In overseas markets, European stocks edged higher as traders bet on more stimulus this week from the European Central Bank (ECB). Asian stocks edged higher after a rebound in the US stocks at the end of last week. US stocks ended higher on Friday, 16 January 2015, on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high.
At 14:17 IST, the S&P BSE Sensex was up 197.73 points or 0.7% at 28,319.62. The index rose 212.17 points at the day's high of 28,334.06 in mid-morning trade, its highest level since 8 December 2014. The index rose 75.47 points at the day's low of 28,197.36 in early afternoon trade.
The CNX Nifty was up 50.35 points or 0.59% at 8,564.15. The index hit a high of 8,570.95 in intraday trade, its highest level since 5 December 2014. The index hit a low of 8,531.50 in intraday trade.
The BSE Mid-Cap index was up 66.79 points or 0.63% at 10,699.90, underperforming the Sensex. The BSE Small-Cap index was up 112.41 points or 0.99% at 11,422.34, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,688 shares advanced and 1,162 shares declined. A total of 105 shares were unchanged.
Telecom stocks were in demand. Tata Teleservices (Maharashtra) (up 3.07%), Reliance Communications (up 2.24%), Bharti Airtel (up 1.94%), Idea Cellular (up 1.68%) and MTNL (up 1.63%), edged higher.
SpiceJet hit an upper circuit limit of 10% at Rs 22.55. The stock had jumped 10% during the previous trading session on Friday, 16 January 2015. The rally in the stock has been triggered by the company's announcement on 15 January 2015 that its board of directors has taken on record the proposal of the principal shareholder and promoter, Mr. Kalanithi Maran and KAL Airways to transfer the ownership, management and control of the company to Mr. Ajay Singh pursuant to a scheme of reconstruction and revival for the takeover of ownership, management and control of the company to be filed before the Ministry of Civil Aviation, Government of India.
Metal shares were mixed. Hindustan Zinc (up 1.97%), Hindalco Industries (up 1.19%), NMDC (up 1.15%), Bhushan Steel (up 0.63%), Sesa Sterlite (up 0.31%) and Tata Steel (up 0.17%), edged higher. However, Steel Authority of India (Sail) (down 0.45%), Jindal Steel & Power (down 0.17%), Hindustan Copper (down 0.07%) and JSW Steel (down 0.06%), edged lower.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds. The partially convertible rupee was hovering at 61.675, compared with its close of 61.87 during the previous trading session.
Brent crude futures edged lower in choppy trade. Brent for March settlement was off 55 cent at $49.62 a barrel. The contract had risen $1.9 a barrel or 3.93%, to settle at $50.17 a barrel during the previous trading session on Friday, 16 January 2015.
European stocks edged higher today, 19 January 2015, as traders bet on more stimulus this week from the European Central Bank (ECB). Key benchmark indices in UK and Germany were up by 0.03% to 0.27%. In France, the CAC 40 index was off 0.27%.
The governing council of the ECB is scheduled to undertake monetary policy review on Thursday, 22 January 2015. The ECB may introduce a large-scale bond-buying program on 22 January 2015, in its bid to avert deflation in the region.
Meanwhile, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country on 25 January 2015. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
Asian stocks edged higher today, 19 January 2015, after a rebound in the US stocks at the end of last week. Key benchmark indices in Singapore, Japan, South Korea, Indonesia and Taiwan were up by 0.07% to 0.89%.
Chinese stocks tumbled, with a wide sell-off sweeping across the financial sector as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business. In mainland China, the Shanghai Composite index was off 7.7%. In Hong Kong, the Hang Seng was off 1.51%. Also affecting sentiment was a fresh fall in home prices across China's major cities.
Brokerage shares slumped after China's securities regulator last week banned three brokerages from opening new margin trading accounts, putting a temporary halt on what has proved a major engine of the market's super-bull rally.
The US stock market remains closed today, 19 January 2015, for Martin Luther King, Jr. Day holiday.
On Friday, 16 January 2015, US stocks ended higher on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high. US gasoline prices fell again in December, leading consumer prices to post their biggest decline in six years, while a gauge of underlying inflation was flat. The data could make the Federal Reserve cautious about raising interest rates.
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